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🌊Spot Bitcoin ETF Inflows Ramp Up As Grayscale Outflows Recede

The Defiant

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Inflows to spot Bitcoin ETFs is ramping up as outflows from the Grayscale Bitcoin ETF continue to fall. Roughly $1.1B flows into Bitcoin ETFs between Feb. 7 and Feb. 9, with only $234M exiting Grayscale's ETF over the same period.

In other news, Layer 2 teams are embracing a new standard designed to bolster the compatibility of smart contract execution with mainstream tech, top liquid restaking project teamed up to launch a new pool on Balancer, and Citrea is bringing zk-rollups to Bitcoin.

✍️ In today’s newsletter:

  • Bitcoin ETF inflows on the rise
  • Layer 2 teams embrace RIP-7212
  • Swell, EtherFi, and Renzo team up on Balancer pool
  • Citrea plans to debut zk-rollup on Bitcoin

🎙️The Defiant Podcast & Interviews:

📈 Markets in last 24 hrs:

TickerValue24h
BTC$45,333 2.45%
ETH$2,426 0.08%
S&P 500$4,998 0.06%
GOLD$2,032 -0.15%
Arch WEB31.30pts -0.91%
FINANCE1.15pts -0.45%
INFRA1.61pts -2.05%
CONSUMER1.33pts 1.11%
Arch WEB3

Learn more about Arch Indices here.

🎬 WATCH

Check out our discussion with Tina and Teddy to learn more about EigenLayer, the pioneering Ethereum restaking protocol. Also watch our podcast with Terraform Labs CEO, Chris Armani, to find out about the project's strategic pivot and the company's decision to file for bankruptcy.


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Markets

Crypto Markets Rally After Bitcoin ETFs See $400M Of Daily Inflows

TLDR Investors are piling money into spot Bitcoin ETFs, with daily inflows ramping up to their highest level in roughly three weeks. More than $400M flowed into the funds on Feb. 8, followed by $541.5M the following day.

SO WHAT The bullish flows coincide with strong performance in the digital asset markets, with BTC up 11% and ETH up 7% in seven days. The impressive inflows also come as withdrawals from Grayscale's ETF fall, with a record low of $51,8M exiting the product on Feb. 9.

READ MORE: Crypto Markets Rally After Bitcoin ETFs See $400M Of Daily Inflows


Layer 2

L2s Finalise New Rollup Standard Bolstering Compatibility With Mainstream Tech

TLDR Leading Layer 2 teams are moving to adopt RIP-7212, a new standard for rollups designed to improve compatibility with mainstream tech hardware and software. For example, the new standard allows users to execute transactions via biometric authentication on mobile devices.

SO WHAT Several leading teams working on Ethereum scalability have already committed to implementing the new standard, including Polygon, ZkSync, and Scroll. Other projects are moving towards adopting RIP-7212 later down the track, including Optimism, Kakarot, and Evmos.

READ MORE: L2s Finalise New Rollup Standard Bolstering Compatibility With Mainstream Tech


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Restaking

EtherFi, Renzo, and Swell Team Up To Launch Liquid Restaking Pool On Balancer

TLDR Top liquid restaking teams have teamed up to deploy a new tri-LRT pool on Balancer. Liquidity providers can initially earn boosted points for EtherFi, Renzo, and Swell, in addition to EigenLayer points.

SO WHAT The news comes as the liquid restaking sector is enjoying explosive growth, with its TVL up by roughly 1,000% since the start of the year at $3B. Projects are competing for market share by offering points to prospective users, with the three projects promising to pay out points for all three projects based on the entire value of LP positions.

READ MORE: EtherFi, Renzo, and Swell Team Up To Launch Liquid Restaking Pool On Balancer


Bitcoin

Citrea Brings ZK Rollups To Bitcoin

TLDR Citrea is aiming to bolster Bitcoin's nascent DeFi sector by launching a zero-knowledge rollup secured by the veteran blockchain. Citrea said it will open-source its code next month ahead of a testnet deployment in April.

SO WHAT Citrea's announcement comes as an increasing number of teams are seeking to iterate Layer 2s and new token standards leveraging Bitcoin. Despite BTC's leading market cap, Bitcoin has fallen behind rival networks in terms of utility amid the rise of DeFi, NFTs, and web3 gaming.

READ MORE: Citrea Brings ZK Rollups To Bitcoin


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🌍 ELSEWHERE

  • Solana's Second Phone Crosses 100,000 Presales, Securing $45M for Development (CoinDesk)
  • Ethereum transaction uptick sees network gas fees hit multi-month high (The Block)
  • SafeMoon SFM token drops 6% following $11 million liquidity drain (CryptoSlate)